Rupee inches lower to 82.24 against US dollar

The rupee depreciated 6 paise to 82.24 against the US dollar in early trade on Monday, May 15. Forex traders said the rupee was trading in a narrow range as the strength of the American currency was negated by a firm trend in domestic equities and easing crude oil prices. On Friday, the rupee settled at 82.18 against the dollar.

At the interbank foreign exchange, the domestic unit opened weak at 82.22 against the dollar, then fell to 82.24, registering a decline of 6 paise over its last close.

The dollar index — which gauges the dollar against six currencies other than the rupee — was last seen trading 0.02 per cent lower at 102.49. The index compares the dollar to the yen, the pound, the Canadian dollar, the Swedish krona, the Swiss franc, and the euro.

Brent crude futures, the global oil benchmark, advanced 0.82 per cent to $73.56 per barrel.

In the domestic equity market, the 30-share BSE Sensex advanced 217.93 points or 0.35 per cent to 62,245.83. The broader NSE Nifty rose 55.55 points or 0.30 per cent to 18,370.35.

"The dollar index rose to 102.71 levels, while Brent crude oil fell to USD 73.80 per barrel as risk aversion was the name of the game," Anil Kumar Bhansali, Head of Treasury Finrex Treasury Advisors LLP said. 

Bhansali further said investors now await WPI inflation and trade deficit data from India and European Industrial Production as well as US NYK Empire State Mfg Index data for further cues.

"Friday marking the highest close since 19th April, signals that momentum favours ongoing upside, which now aims 82.34 or 82.47, both recent peaks. While such a move is in play, 81.09 may be considered as a downside marker," commented Anand James, chief market strategist at Geojit Financial Services.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Friday as they purchased shares worth Rs 1,014.06 crore, according to exchange data.

With PTI inputs